Unilever in Brazil (1997-2007) ‘Marketing Strategies for LowIncome Consumers’
Group E: Cian Corbett David Mc Weeney Seánpaul Walsh xxx xxx xxx
1. Introduction 2. Brazil 3. North-East Market Attractiveness 4. Brand Portfolio 5. Options 6. Marketing Mix 7. Conclusion Bibliography 25
3 4 6 11 14 20 24
Unilever have a long and profitable history in Brazil. After setting up in Brazil in 1929, Unilever set up their first plant in 1930 to manufacture Sunlight Soap. In 1957 OMO, the countries first detergent, was launched and grew to be Unilever’s most successful brand commanding 52% of the market share. Completing the detergent portfolio are Minerva, which is sold as both soap and detergent powder and Campeiro, their price based brand. Together the Unilever portfolio commands 81% of the market. Upon review of the company’s strategic options positive economic forces in Brazil have presented Unilever with the viable option of pursuing the low income consumer market. Currently their price based brand Campeiro is priced affordably but does not meet low income needs for perceived product attributes and as such only retains 6% of the market. Management are concerned this presents a chink in Unilever’s armour presenting an opportunity for Proctor and Gamble to attack and grow in this segment. Unilever had fallen victim to this strategy in India whereby a low priced detergent “Nirma” was developed and targeted at low income consumers and quickly gained 48% of the market.
Brazil is a country with a population of approximately 170m. It’s predominately split into two regions, the northeast with a population of 48m and the southeast with a population of 73m. The northeast and the southeast regions vary greatly with regards to a number of issues related to the detergent and soap markets. Firstly income and education levels vary, as do cultural values and norms.